Nvidia  (NVDA) - Get Report shares have been on fire this quarter, surging more than 34%. On Tuesday, the stock added another 1.2% after catching a new Street-high price target.

Benchmark analysts lifted their price target to $275 from their prior target of $240. It goes without saying that the investment bank affirmed a buy rating on the stock.

Nvidia roared back to life in 2019. The shares are up more than 76% from the May low and more than 88% from the 2018 low in December. 

While the shares have been cooling off over the past few days, bulls are hopeful that Nvidia will continue higher in 2020.

Can the stock get to $275, Benchmark’s new price target? Let’s look at the charts.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.

Trading Nvidia Stock

Daily chart of Nvidia stock.

Daily chart of Nvidia stock.

A rally to $275 would represent a gain of $40 a share, or 17%, from current levels. While certainly not a rally to ignore, it’s more doable than many investors may first realize at a glance.

For Nvidia 2020 could be a very good year, particularly if the Santa Clara, Calif., graphics-chip specialist returns to robust earnings and revenue growth, and closes its Mellanox  (MLNX) - Get Report acquisition. But disappointing growth could really weigh on the stock.

While those risks always are present, the current rally is predicated on management delivering on these fronts. And as of now, Nvidia bulls have done a good job of bidding the stock higher.

The shares have put in a solid up trend (blue line) and continue to hold up over the 20-day and 50-day moving averages.

From here, the setup is pretty simple. Bulls will want to see Nvidia stock hold up over $227. That keeps it above trend, the 20-day moving average and the 38.2% retracement of the entire 2018 peak-to-trough decline.

 A move below this mark puts the 50-day moving average and $212 level on watch.

Should support hold, bulls need to see a move through $240, which has been resistance this month. Above puts the 23.6% retracement from the 2018 range in target at $252. Above that and Nvidia stock could gain further momentum toward Benchmark’s $275 price target.